Fund Evaluator:
AB Municipal Bond Inflation Strategy C (AUNCX)
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Fund Details
AB Municipal Bond Inflation Strategy C Overview
AB Municipal Bond Inflation Strategy C (AUNCX) is an actively managed Municipal Bond Muni National Short fund. AllianceBernstein launched the fund in 2010.
The investment seeks to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal. The fund pursues its objective by investing principally in high-quality, predominantly investment-grade, municipal securities that pay interest exempt from federal taxation. It will invest at least 80% of its total assets in fixed-income securities rated A or better or the equivalent by one or more nationally recognized statistical rating organizations. The fund may invest up to 20% of its total assets in below investment grade fixed-income securities (“junk bonds”).
About AB Municipal Bond Inflation Strategy C (AUNCX)
There are 3 members of the management team with an average tenure of 7.95 years: Daryl Clements (2022), Matthew Norton (2016), Andrew Potter (2017). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal TR USD index with a weighting of 100% and Bloomberg US Trsy Infl Note 1-10Y TR USD index with a weighting of 100%. AB Municipal Bond Inflation Strategy C has 710 securities in its portfolio. The top 10 holdings constitute 11.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
AB Municipal Bond Inflation Strategy C is part of the Fixed Income global asset class and is within the Municipal Bond fund group. AB Municipal Bond Inflation Strategy C has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 95.9% (95.4% domestic bond, 0.5% foreign bond and 0.0% convertible bond). AB Municipal Bond Inflation Strategy C has 4.1% of the portfolio in cash.
Assets Under Management
The fund has $11 million in total assets, which is below the $633 million average for the Muni National Short category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
AUNCX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The AB Municipal Bond Inflation Strategy C expense ratio is high compared to funds in the Muni National Short category. AB Municipal Bond Inflation Strategy C has an expense ratio of 1.50%, which is 160% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. AB Municipal Bond Inflation Strategy C has a portfolio turnover rate of 18%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 51% for the Muni National Short category.
Recently, in the month of July 2026, AB Municipal Bond Inflation Strategy C returned -1.0%, which earned it a grade of F, as the Muni National Short category had an average return of -0.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
AB Municipal Bond Inflation Strategy C has a trailing yield of 2.06%, which is below the 2.78% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
AB Municipal Bond Inflation Strategy C Grades
Year to date, the fund has returned 1.0%, 0.2 percentage points better than the category, which translates into a grade of B. The fund has returned 3.8% over the past year (grade of A), 2.7% over the past three years (grade of F) and 1.1% per year over the past five years (grade of D) and 2.0% per year over the past 10 years (grade of A).
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AUNCX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| AUNCX Return (NAV) | -1.0% | -1.0% | 3.8% | 2.7% | 1.1% | 2.0% |
| AUNCX Grade | F | F | A | F | D | A |
| +/- Category | -0.5% | -1.1% | 1.1% | -0.6% | -0.3% | 0.4% |
| Muni National Short Avg | -0.5% | 0.1% | 2.7% | 3.2% | 1.5% | 1.5% |
| AUNCX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.0% | 0.0% |
AUNCX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| AUNCX Return (NAV) | 1.0% | 3.9% | 1.5% | 4.1% | -5.8% | 6.3% | 3.5% | 5.2% | -1.2% | 2.5% | 0.7% |
| AUNCX Grade | B | C | F | B | F | A | A | A | F | B | A |
| +/- Category | 0.2% | -0.1% | -1.1% | 0.3% | -2.6% | 5.9% | 1.1% | 1.8% | -2.4% | 0.6% | 0.9% |
| Muni National Short Avg | 0.8% | 4.0% | 2.6% | 3.9% | -3.2% | 0.4% | 2.4% | 3.4% | 1.2% | 1.9% | -0.1% |
| Risk Measures | |
| Standard Deviation: | 3.4% |
| Total Risk Index: | 0.28 - Low |
| Category Risk Index: | 1.64 - High |
| Category Risk Grade: | F (94% Rank) |
| Beta: | 0.54 |
| R-Squared: | 82% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 2.1% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1755 Mil |
| Fund Total Assets: | $ 12 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 18% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 10.5 years | |||
| Average Tenure: 8.0 years | |||
| Managers (Year): Norton Matthew (2016), Potter Andrew (2017), Clements Daryl (2022) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 710 |
| % in Top 10 Holdings: | 11.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.5% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 95.4% |
| Foreign Bond: | 0.5% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 4.1% |
Purchase Information
| Fund Family: | AllianceBernstein |
| Phone Number: | 800-221-5672 |
| Website: | www.AllianceBernstein.com |
| Status: | Open |
| Inception Date: | January 26, 2010 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $2,500 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 1.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 1.00% |
Expenses and Fees | |
| Expense Ratio (%): | 1.50% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.58% |
| Share Class: | AB Municipal Bond Inflation Strategy Adv |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 50 |
